Showa System EngineeringTSE:4752 75 ROE % is 11.80% as of Mar. 2026, which is 8% above its 10-year median of 10.93. GuruFocus rates TSE:4752 with a GF Score™ of 75/100 and a GF Value™ of 円1,590.43 (Fairly Valued). Among 2,677 Software companies, Showa System Engineering ranks better than 71.01% on this metric.
The historical rank and industry rank for Showa System Engineering's ROE % or its related term are showing as below:
TSE:4752'
s ROE % Range Over the Past 10 Years
Min: 9.67 Med: 10.93 Max: 14.14
Current: 13.7
During the past 13 years, Showa System Engineering's highest ROE % was 14.14%. The lowest was 9.67%. And the median was 10.93%.
TSE:4752's ROE % is ranked better than 71.01% of 2677
companies
in the Software industry
Industry Median: 4.68
vs TSE:4752: 13.70
Showa System Engineering (TSE:4752) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Information Technology Services subindustry, Showa System Engineering's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Showa System Engineering ROE % vs Software Industry
For the Software industry and Technology sector, Showa System Engineering's ROE % distribution charts can be found below:
* The bar in red indicates where Showa System Engineering's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Showa System Engineering (TSE:4752) has a ROE % of 11.80% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Showa System Engineering and its competitors. This is near median its historical median of 10.93. Over the past decade, Showa System Engineering's ROE % has ranged from 9.67 to 14.14. According to the industry distribution chart, Showa System Engineering ranks #776 out of 2677 companies in the Software industry, placing it in the top 29%.
Is Showa System Engineering's ROE % too high?
Showa System Engineering's current ROE % of 11.80% is near median its 10-year median of 10.93. Over the past 10 years, this metric has ranged from a low of 9.67 to a high of 14.14. The Software industry median ROE % is 4.68. Showa System Engineering's value of 11.80% is 152.1% above this industry median. Based on the distribution chart, Showa System Engineering ranks #776 out of 2677 companies in the Software industry, which is above the industry midpoint. Overall, Showa System Engineering has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Showa System Engineering's ROE % compare to IBM and ACN?
According to the Software industry distribution chart, Showa System Engineering ranks #776 out of 2677 companies for ROE %. This puts Showa System Engineering in the upper half of its industry. The industry median ROE % is 4.68. Showa System Engineering's value of 11.80% is 152.1% above this benchmark. Historically, Showa System Engineering's own ROE % has ranged from 9.67 to 14.14 over the past decade. While the company's 10-year median is 10.93 vs. the industry median of 4.68, Showa System Engineering has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Software company?
The median ROE % among Software companies is 4.68, based on 2,677 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Showa System Engineering's current ROE % of 11.80% is 152.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Showa System Engineering and its competitors. For the Software industry, the median ROE % is 4.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Showa System Engineering's current ROE % is 11.80%, which is near median its own 10-year median of 10.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Showa System Engineering stock overvalued right now?
Based on GuruFocus' analysis, Showa System Engineering (TSE:4752) is currently considered Fairly Valued. The stock's GF Value™ is 円1,590.43, compared to a current price of 円1,550.00 — trading 2.5% below its estimated fair value. The current ROE % is 11.80%, which is near median its 10-year median of 10.93 and 152.1% above the Software industry median of 4.68. Showa System Engineering's overall GF Score™ is 75/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Showa System Engineering (TSE:4752), the current ROE % is 11.80% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Showa System Engineering (TSE:4752) Overvalued in 2026?
Based on GuruFocus' analysis, Showa System Engineering stock appears to be undervalued.
The current stock price of 円1,550.00 is trading 2.5% below its estimated GF Value™ of 円1,590.43.
GuruFocus considers Showa System Engineering to be Fairly Valued.
Key valuation signals for TSE:4752:
ROE %: 11.80% (near median its 10-year median of 10.93)
GF Value™: 円1,590.43 vs. price of 円1,550.00 (2.5% below fair value)
Industry Position: 152.1% above the Software median (#776 of 2677)
No single metric tells the full story. See the TSE:4752 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Showa System Engineering Corp is engaged in development of information systems, system integration, consulting, software design, and development related to corporate computer systems. The company also provides business support services to various industries, such as administrative services for financial institutions, medical checkup reservations, and scanning services.
75GF Score
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